The First Line Item in the Operating Activities Section of a Spreadsheet

question 102

Multiple Choice

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

• A) Net income (loss).
• B) Adjustments to net income.
• C) Cash received from customers.
• D) Cash.
• E) Increase (decrease) in accounts receivable.

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Definitions:

Financial Loss

The negative impact experienced when expenses exceed revenues, or when assets lose value, affecting an individual's or entity's overall financial health.

Volenti Non Fit Injuria

A defence in torts based on the plaintiff’s voluntarily assuming a clear legal risk.

Physical Risk

Refers to the likelihood of bodily harm or injury in a given environment or activity.

Legal Risk

The potential for losses or damages resulting from legal proceedings, actions, or changes in law.